back to you in new york. >> jamie: steve harrigan following the developments in cairo for us. thank you, steve, stay staff. >> kelly: jamie another major development in the middle east. the israeli government announcing plans to build thousands of new homes in east jerusalem and the west bank on the heels of a successful palestinian bid at the united nations to gain nonmember observer state status. secretary of state hillary clinton calling the move a setback. >> let me reiterate that this administration, like previous administrations, has been very clear with israel, that these activities that back the cause of a negotiated peace. we all need to work together to find a path forward in negotiations that can finally deliver on a two-state solution. that must remain our goal. >> kelly: so what does it mean for the stalled israeli-palestinian peace talks, john bolton weighs in just ahead. >> jamie: also, a top al-qaeda terrorist is now in custody. big news, we'll tell you where he was captured and why his arrest is so significant. >> kelly: plus, breaking news out of sear yeah, t